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Jobs Growth And Rates – Interest Rates To Rise

In the News
David Rogers reports in The Australian, ” A further strengthening of Australia’s job market has backed official forecasts of faster economic growth reinforcing economists expectations that wages growth will recover enough to allow the Reserve Bank to consider lifting interest rates from a  record low next year.”
 
The market was not expecting this news and the growth was evident during the last quarter according to a recent survey by the National Australia Bank. Business conditions are lifting which increases confidence for the short to medium term outlook and an improving economy. The RBA governor describes the job market as ” Unambiguously good.” Against this positive sentiment, wages growth is soft and consumers are grappling against record household debts with consumers avoiding the urge to spend reflected by weak retail sales and consumers struggling to keep up with rising bills.
Hayley James

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